Supermarket Sainsbury’s has become the first grocer to extend its Aldi price-match campaign to its 800 local convenience store outlets.
In a bold move by its boss to win back market share from the German discounter, Britain’s second-largest supermarket chain today (4) has added price matches on 200 daily staples — including milk, chicken, bread and vegetable oil — in its local convenience stores.
Simon Roberts, chief executive, told The Times that he had decided to roll out the campaign because customers had told him that they “really love the convenience of Sainsbury’s Local, but would really like to see value on the products we buy most often.
“What we’re seeing from customers is that they want to be sure they’re getting the best value.
“UK grocery is one of the most, if not the most competitive markets in the world,” Roberts said. “What we’ve seen is lots of new, smaller supermarkets grow in the UK, and so we have to be competitive on everyday products that customers buy, in order for them to be confident in our value.”
He added that matching with Aldi prices “gives customers real confidence”, particularly when shoppers’ budgets are squeezed.
The Aldi price-match scheme will replace Sainsbury’s “pocket friendly prices” campaign, which launched last year to help customers find cheaper items in its Local shops more easily.
Sainsbury’s is targeting between 20 and 25 new Local stores each year, as part of its ongoing expansion plan, which includes opening more larger-format supermarkets. It will open a new convenience shop at Edinburgh Airport in December, in a unit previously occupied by Marks & Spencer. It will be Sainsbury’s first airport store.
“Whether on the way to work, or travelling from a station, local stores play such an important role in people’s lives," Roberts said.
Waitrose is to open 100 new convenience shops over the next five years as part of a £1 billion investment, while Marks & Spencer unveiled plans to open ten new convenience stores this year and renew up to 50. Morrisons plans to open 400 more of its Morrisons Daily convenience stores, with a wider goal of hitting 2,000 smaller stores in 2025.
Supermarket Asda has announced the joining of Jo Whitfield in its board of directors as a Non-executive Director to support its turnaround plans.
Whitfield previously spent eight years at Asda from 2008 onwards, holding a number of senior positions in operations, e-commerce, commercial, general merchandise and money & mobile.
She then joined the Co-op, where she was Chief Executive of Food for five years from 2017. Until last year, she was the CEO at Matalan, leading a business turnaround strategy.
Asda noted that given her breadth of experience in the convenience market from her time at the Co-op, she will have a particular focus on supporting the growth of the group’s Express c-store chain.
In recent weeks, Asda’s new Chairman, Allan Leighton, has made several changes to the struggling retailer’s management team to support his strategy to return the chain to its traditional focus on value.
He is also reported to have restarted the group’s search for a Chief Executive, having operated without a permanent leader since the abrupt departure of Roger Burnley in August 2021.
At the end of January, Asda announced that it was cutting prices on over 4,000 products as part of a move to re-establish its value credentials and win back shoppers after a slump in its market share over the past year.
Commenting on his latest appointment, Leighton said, “Jo is one of the UK’s most experienced retail leaders and has a deep knowledge of the food retail, convenience and fashion markets.
"She also understands Asda’s DNA and the role this business plays in delivering value for hard-working families. We are delighted to welcome her back to Asda.”
Whitfield, who will join Asda shortly, added, “Asda is one of the biggest names in retail and plays an important role in the daily lives of millions of customers and communities throughout the UK.
"It is a business that I have a strong affinity with and I look forward to working with Allan and the rest of the leadership team to help Asda get back on track.”
Morrisons has announced its trading update for the fourth quarter (Q4) and full year 2023/24, showcasing a robust performance marked by significant operational and financial improvements.
The supermarket chain reported its strongest quarterly like-for-like (LFL) sales growth in nearly four years, alongside a notable increase in underlying EBITDA and total revenue.
For the 52 weeks ending 27 October 2024, Morrisons achieved a 4.1 per cent increase in Group LFL sales, with Q4 LFL sales rising by 4.9 per cent - the highest quarterly growth since early 2021. Underlying EBITDA surged by 11.2 per cent to £835 million, while total revenue climbed 3.8 per cent to £15.3 billion for the full year. Q4 revenue also saw a strong uptick, increasing by 4.8 per cent to £3.8 billion.
“This has been a year of urgent reinvigoration and positive progress for Morrisons. Customer transactions increased, market share grew from Q2, and we saw positive switching from our competitors,” Rami Baitiéh, chief executive, said, adding that improvements in availability, pricing, promotions, and the loyalty scheme have driven the financial performance.
The Morrisons More Card has been a standout success, with linked sales growing to 68 per cent at the year-end and reaching 76 per cent by the time of the update. “The More Card is firmly established as a customer favourite after a stunning year,” Baitiéh noted, with 3.5 million Morrisons Fivers redeemed during the two-week Christmas period.
Morrisons expanded its convenience store estate to over 1,600 stores and acquired 36 convenience stores in the Channel Islands in November 2024.
Britain's biggest supermarket group Tesco plans to cut about 400 jobs from stores and its head office, seeking efficiency savings so it can invest in the business, it said on Wednesday.
The move follows that of Sainsbury's, the No. 2 player, which said last week it planned to reduce its headcount by over 3,000 roles.
British companies, and particularly large employers, are facing increased costs this year after the Labour government's first budget in October hiked National Insurance contributions for employers and the national minimum wage.
"We have started speaking to colleagues about a number of proposed changes in our stores and head office, including changing our bakery model in some stores, and updating our management structure in Tesco Mobile phone shops," Tesco said.
"Taken together, the changes we are proposing mean that around 400 roles will be removed."
Tesco said it would try and find alternative roles for impacted staff, noting it currently has 1,000 vacancies across the business.
(Reuters)
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People hold placards during a farmers protest outside the Oxford Farming Conference on January 9, 2025 in Oxford, England.
Lidl GB has voiced strong support for the British farming community, urging the government to pause and reconsider recent Inheritance Tax regime changes that could potentially impact agricultural investment.
The supermarket, which sources two-thirds of its products from British suppliers, highlighted its substantial commitment to the UK food industry. In the past year alone, Lidl has invested £1 billion in the egg industry, £1.5bn in beef, £500m in pork, and £70m in root vegetable suppliers.
By the end of the financial year, Lidl expects to have invested a total of £21bn in British food production, exceeding its original five-year commitment by 40 per cent. The company sources 100 per cent of its fresh beef, pork, poultry, milk, butter, cream, and eggs from British producers.
“Providing security and long-term investment for British agriculture is key to helping ensure that farmers can continue to produce affordable and increasingly sustainable food for generations to come,” Lidl said in a statement.
“We are concerned that the recent changes to the Inheritance Tax regime will impact farmer and grower confidence and hold back the investment needed to build a resilient, productive and sustainable British food system.
“We, therefore, support the call by the farming community to pause the implementation of those changes and to consult with industry to achieve a mutually beneficial outcome.”
Last year, prime minister Keir Starmer's Labour government announced that in order to find vital new revenue, some farms would no longer be exempt from inheritance tax, a long-standing measure designed to facilitate the family handover of farms.
From April 2026, the exemption will be capped at £1 million. Beyond that, a 20 per cent tax will apply, half the normal rate.
British farmers have been protesting the move, which they say threatens the agricultural sector and food production.
The government maintains the actual threshold before paying inheritance tax could be as much as £3m, once exemptions for each partner in a couple and for the farm property are taken into account.
British farmers have been struggling in recent years due to a lack of funding and post-Brexit labour shortages.
Farming businesses previously qualified for 100-percent relief on inheritance tax on agricultural and business property, reducing the amounts that farmers and landowners pay when farmland is bequeathed after a death.
Lidl GB has become the first UK supermarket to announce a fibre strategy that spans its entire product offering, setting out two key targets.
By 2026, it plans to increase the tonnage of total fibre sold by 20 per cent, and by 2030, boost the volume of wholegrains it sells to 25 per cent of total grains.
With nearly a quarter (23%) of shoppers actively seeking high-fibre products for their weekly groceries [Kantar, March 2023], the discounter said the new initiative is set to make it easier and more affordable for customers to improve their diets. Currently, only 9 per cent of UK adults meet the recommended daily intake of 30g of fibre, with lower-income households consuming even less, highlighting the need for this initiative.
As part of its new targets, Lidl is working with suppliers to enhance existing recipes by incorporating more plant-based, fibre-rich ingredients like lentils, beans, and grains, whilst reducing fats and sugars. It will also seek to introduce new high-fibre products.
Lidl also became the first retailer to sign up to the Food and Drink Federation (FDF) Action on Fibre initiative to help make higher-fibre diets more appealing for households. It has also turned to its rewards app, Lidl Plus, to offer monthly promotions on these products.
Building on its new fibre focus, Lidl has also become the first retailer to implement WWF’s ‘Planet-Based Diets’ methodology internationally across all 31 countries in which it operates. The WWF methodology will be used to measure and report on its product assortments and sales as it seeks to identify clear routes towards offering customers healthier and more environmentally conscious products, including vegetables, wholegrains, and plant-based protein foods such as beans and pulses.
With its ambition to align with the Planetary Health Diet by 2050, Lidl’s new overarching commitment is first-to-market and sets out to increase the proportion of plant-based foods sold, including plant-based protein sources, wholegrains, fruits, and vegetables, by 20 per cent by 2030.
“As the first UK retailer to align its strategy with the science of the Planetary Health Diet, Lidl is committed to supporting healthy and sustainable diets and setting ambitious targets to ensure our food is good for both people and the planet,” Richard Bourns, chief commercial officer at Lidl GB, said.
“We stand firmly behind the need for sustainable consumption as part of the net-zero transition and are committed to offering our customers an ever-expanding range of healthy, sustainable products at affordable prices.”